Electronic payment systems

Electronic payment systems are ways of paying for goods or services without using cash. The customer pays by card, phone or online, and the money is transferred electronically from their bank account to the business's. For example, you can tap a debit card on a reader at a garden centre or pay by card at a website checkout.

Electronic payments are quick and convenient for customers. A payment can be made in seconds, so customers do not need to find the right change or wait while cash is counted. This can make a business more attractive, especially when customers are in a hurry, and shorter queues mean staff can serve more people.

For businesses, electronic payments can reduce the costs and risks of handling cash. There is less need to count, store and bank notes and coins, and less risk of theft or of staff giving the wrong change. A mobile coffee van, for instance, can take card payments and avoid carrying a large float (the cash kept for giving change).

Each electronic payment creates an automatic record of the transaction. This helps with record-keeping because the business has a clear list of what was sold, when and for how much. That makes it easier to track income and prepare accounts, and it reduces paperwork.

Electronic payments also make it possible to sell to customers the business never meets. A small furniture maker could take a card payment from someone visiting the workshop and also sell a shelf online to a customer in another city. The business is not limited to customers who can visit and pay with cash.

Reducing paperwork and cash handling also cuts costs: less admin time means staff can spend more time on tasks such as serving customers.